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Assumption University-eJournal of Interdisciplinary Research (AU-eJIR) Vol 2. Issue 1 THE EFFECT OF ADVERTISING ON BTS SKYTRAIN TOWARDS PURCHASING INTENTION Nunthita Prongsirikul Assumption University Bangkok, Thailand Email: [email protected] Abstract: BTS Skytrain was known as a rapid transit system in Bangkok, the capital city of Thailand. There is an advertising establish in the Skytrain and in the station’s area. With an expansion and development of the BTS Skytrain for the highest used, most of the areas belong to BTS were used for advertisement purpose as there is people using BTS Skytrain more than 500,000 people per day. It can guarantee that the advertising shown in BTS Skytrain area will attract large amount of people. This study investigated that among three types of transit advertising provide in BTS Skytran area; in the station, on the surface of trains, and inside of the trains, which one is the most attractive and affect purchasing intention. In addition, the purpose of the study is to investigate that the transit advertising mentioned above can create customer awareness and increase an interest of the product or service advertised in the BTS Skytrain area. In this study, a questionnaire was used as a tool to collect the primary data. A total of 150 questionnaires were distributed and completed by the target populations who are Thai people that have been used BTS Skytrain even occasionally or daily. The data was analyzed by using descriptive statistics and the hypotheses tested use Multiple Regression and Anova. This research highlighted that transit advertising in the BTS Skytrain is a useful channel to distribute the information for product and service access by large group of customer. Moreover, advertising in BTS Skytrain area was found as an effective supporting tool either for service provider or product manufacturer to promote and create brand awareness to the customer using a benefit of the growth and expansion in BTS users. Keywords: Purchasing Intention, Skytrain, Transit Advertising 1. INTRODUCTION The BTS Skytrain is Thailand’s first elevated electric railway system that operated by BTSC and opened for service on 5 December 1999. There were a total of 52 trains, comprises 34 stations across 2 separate lines. The Sukhumvit Line currently consists of 22 stations, connecting Mo Chit and Bearing. The Silom Line currently consists of 13 stations, connecting National Stadium and Bang Wa. Both lines intersect at Siam station which is the system’s single shared interchange station (BTSC Annual Report, 2015). Public transportations become a part of marketing tools because of their accessibility. People can reach an out-of-home advertising on their daily life easily. 2. LITERATURE REVIEW Following sections contains review of important work done in the area of advertising . 2.1 Advertising: Advertising is defined as “the techniques and practices used to bring products, services, opinions, or causes to public notice for the purpose of persuading the public to respond in a certain way toward what is advertised” (The Britanica Encyclopedia. ISSN: 2408-1906 Page 135 Assumption University-eJournal of Interdisciplinary Research (AU-eJIR) Vol 2. Issue 1 2002:CDRom). Wongmontha (1999) also stated that manufacturers of products and services have use advertising as a tool to differentiate them, communicate with market, create an impact on sales volume, and sell products, services, ideas, and even the company’s image. Advertising is all about communication (Wilmshurst, 1985). It is a way of communication that provides useful, relevant, and pertinent information which can be in any form communication about organization, product, service, or idea (Weibacher, 1997; Alexander, 1996) Moreover, advertising also known and widely discussed as an important promotional tool because of its persuasive ness and particularly used by the companies whose products and services are targeted the mass markets. As an advertiser, delivered enough advertising to the right customers can measure the sales (White, 1988). Advertising is all about communication (Wilmshurst, 1985). 2.2 Transit Advertising: The Outdoor Advertising Association of America (2006) explained that marketers and advertisers has classified the media that use to advertise the products and services into two kinds; mass media such as television, radio, newspaper, and magazine, and supporting media such as outdoor posters, transit advertising, and leaflets. Transit advertising is the advertising displays attached to moving vehicles or positioned in the common areas of transit station, terminals, and airports. Transit advertising can achieve both high level of repetition and in-depth reading while offering high-quality and wide choice of types and sizes. The advertiser can effectively use as transit advertising is considered as a flexible advertising (Krugman, et al., 1994). However, some of the audience may have certain lifestyle traits and/or behavioral characteristics that are not in common with the target market as a whole. Therefore, sitting or standing in crowded subway or train may not be conducive to reading advertisements (G.E. Belch and M.A. Belch, 2003). 2.3 Purchase Intention: Purchase intention is buying willingness that was used as an effective tool to predict the purchasing process (Dodds et al., 1991; Ghosh, 1990). Shah et el. (2012) states that purchase intention is a kind of decision-making that studies the reason to buy by a consumer. Purchasing decision is very complex process. The higher the purchase intention is, the higher consumer’s willingness to buy a product (Dodds, et al., 1991). Consumer purchase intention also comes from consumers’ perception on benefits and value acquisition which is an important key to predict consumer purchasing behavior (Chi et al., 2009) Customers are affected by internal and external motivations during the buying process. They always percept that low cost, simple packaging, and little-known product, have high risk as they percept that the quality is not trustable (Gogoi, 2013). However, before people make a decision, the researchers have proposed six stages of consumer behavior; awareness, knowledge, interest, preference, persuasion, and purchase (Kotler & Armstrong, 2010; Kawa et al., 2013). An effective tool to predict the purchasing process is purchase intention (Ghosh, 1990). However, it can be changed under the influence of price or perceived quality and value (Gogoi, 2013). Consumer purchase intention arises from consumers’ perception on benefits and value acquisition (Chi et al., 2009). Perceived value and perceived quality influence purchase intention, the more perceived value and perceived quality, the higher purchase intention is (Monroe and Krishnan, 1985; Zeithaml, 1988). 3. METHODOLOGY In this research, a conceptual framework has been developed by follow the literature and theory from other authors. The researcher has drawn conceptual framework by using three categories of advertising that launch in the station, on the surface of trains, and in the trains, ISSN: 2408-1906 Page 136 Assumption University-eJournal of Interdisciplinary Research (AU-eJIR) Vol 2. Issue 1 to find the relationship toward purchase intention. Then, the conceptual framework model can be explained as Figure-1 given below. Figure-1 Methodology in Brief There are four hypotheses to study the effect of the types of an advertising that can use to find the relationship towards purchase intention following the conceptual framework shown on figure above. - H1o: There is no relationship between advertising in the stations and purchase intention. - H1a: There is a relationship between advertising in the stations and purchase intention. - H2o: There is no relationship between advertising on the surface of trains and purchase intention. - H2a: There is a relationship between advertising on the surface of trains and purchase intention. - H3o: There is no relationship between advertising in the trains and purchase intention. - H3a: There is a relationship between advertising in the trains and purchase intention. - H4o: There is no difference between the age group and purchase intention. - H4a: There is a difference between the age group and purchase intention. This research is descriptive to find the effects of type of advertising on BTS Skytrain toward purchase intention. The technique used in this research is surveys by using questionnaire. According to the limitation of this study, the researcher would focus only one kind of transportation in Bangkok, Thailand (BTS Skytrain) and specific on Thai’s customer. For research questions, the researcher has collected qualitative data by asking the respondents' personal data, followed by the quantitative part about their attitude toward types of advertising on BTS Skytrain, in the stations, on the surface of trains and in the trains, the impact toward their purchase intention. There were 150 respondents in the sample. They all are Thai customer who have ever experienced of using BTS Skytrain. Regarding of the sampling procedure, non-probability technique will be used to identify the sampling. The researcher uses two sampling methodologies, Purposive Sampling, select the respondents based on the judgment of researcher and Convenience Sampling, select people who are most conveniently available. ISSN: 2408-1906 Page 137 Assumption University-eJournal of Interdisciplinary Research (AU-eJIR) Vol 2. Issue 1 4. RESULTS AND DISCUSSION In this study, the researcher applied the hypotheses to find out the relationship between independent and dependent variables. The researcher applied Multiple-regression and Anova to test all the hypotheses. After testing three hypotheses, the researcher found that one null hypothesis was accepted and two null hypotheses were rejected. Hypothesis One: There is a relationship between advertising in the stations and purchase intention. Hypothesis Two: There is a relationship between advertising on the surface of trains and purchase intention. Hypothesis Three: There is no relationship between advertising in the trains and purchase intention. Hypothesis Four: There is no difference between the age group and purchase intention. 5. CONCLUSION After conducting the questionnaire, the result of the study shows that all independents variables; advertising in the station, advertising on the surface of the train, and advertising in the train, have significant affect to purchase intention. The recommendation provided is based on the question ask in the questionnaire. First, 80% of the respondents perceived that the advertising in the train is the most attractive among three types as there is a TV screen provided in the train. People normally spend their time in the train rather than the station. Then, they will have time to focused more on the advertising provided. Thus, the product manufacture or service provider shall invest in the advertising in the train to attract more people. Second, most of respondents (34.7% or 52 respondents) perceived that the content of the advertising is the most attractive, followed by style of the advertising and position of the advertising accordingly. Thus, the advertising creator and brand shall pay attention on the content to make sure that the message is communicated in the right way to the right people by using the word or phrase that easy to recognize and the picture that attractive. In addition, the creator and brand shall use the right style that best match with their product or service and content used. The position is to be concerned too. The right position of the content will attract more people. Putting the advertising in the place that most people can see for effective communication can ensure the potential perception of people. Lastly, focusing on the respond to each kind of advertising in the BTS Skytrain, the perception on advertising in the train is quite high compare to the other in terms of attractive, understandable, effective, accessible/reachable and relevant to the respondents. Furthermore, people can remember the advertising available in the train in the higher level when compare to other kinds of advertising. The recommend can be proposed in two ways; focusing on the effective type of advertising or develop the less effective type of advertising. BTS can charge more fees from the creator or brand for the advertising provided in the train as a proof that people are interest in this kind of advertising rather than another two. In addition, a developed strategy must be used to create more effective to advertising in the station and on the surface of the train. The more accessibility means the more communication. Brand can change the content of the advertisement to what people can understand it clearly as the people will not spend much time viewing the advertisement on the station and surface of the train. Moreover, the position of advertisement is important too. The bigger size of the station means the more ISSN: 2408-1906 Page 138 Assumption University-eJournal of Interdisciplinary Research (AU-eJIR) Vol 2. Issue 1 competition of advertising among each brand to attract people. People will see and remember the advertisement only when it is in the right position. REFERENCES Advertising. (2002). (CD-ROM) Available: Britanica Encyclopedia 2002 database Alexander, Ralph S. (1996). Marketing Definition. Chicago: American Marketing Association. Belch, George E.; & Michael A. Belch. (2003). Advertising and Promotion 4th ed. New York: McGraw-Hill. BTS Group Holdings PCL. BTSC Annual Report 2015: July 2016, Retrieved from bts.listedcompany.com/misc/ar/20160621-bts-ar201516-en-02.pdf Chi, H. 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Issue 1 Wilmshurst, John. (1985). The Fundamentals of Advertising. London: Heiwemann. Wongmontha, Seri. (1999). Advertising and Promotion. Bangkok : Teerafilm & Sitax. Zeithaml, V. A. (1988). “Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence.” Journal of Marketing 52 (3): 2-22. ISSN: 2408-1906 Page 140